An Australian insurer has launched a new product that covers small businesses with as few as five employees.
Integrity Life has announced the launch of its combined group insurance offering designed specifically for small to medium businesses.
The new product, named Five+, offers combined income and life insurance in the one product to SME businesses with as few as five employees or as many as 50. It is also the first group product of this type that offers an income benefit to the employer as well as the employee and that can be purchased and maintained online.
Commenting on the launch, Integrity MD Chris Powell said the Five+ product is simple to understand and maintain and completely transparent.
“It is very much an off-the-shelf solution that is easy for business owners to understand, purchase and administer, and provides SMEs with a great way of protecting their greatest asset: their employees,” he said.
SMEs and start-ups report challenges in attracting and retaining talent as they generally can’t offer the same perks and benefits that their larger competitors do. Mr Powell said the new product will help employers create a compelling offer to lure the talent they need to grow their business on a cost-effective and affordable basis.
He added that group insurance has historically been unavailable to SMEs with less than 20 staff because of the traditional high-cost structures of insurers.
“Integrity has been able to solve this challenge using a simple product design, unique administration structures and processes, and an award-winning technology platform,” Mr Powell said.
Integrity expects the Five+ product will appeal to employers because it helps manage their financial risk if they temporarily lose an employee due to extended illness, when an employee is sick for an extensive time should they need to hire a temporary worker to do the affected job.
The Five+ product launches today (8 October 2019) through a select group of national insurance broker networks, with whom Integrity has been working to develop the product. The offering will then be gradually extended to the broader market over the coming months.
“Five+ has been co-created with extensive feedback from brokers and SMEs, which means that the product is completely fit for purpose,” Mr Powell said.
“Having grown up around small business, I know how important attracting and retaining staff can be, especially given the impact one person being absent can have on the success of a smaller business.”